Changing technology & customer needs in the banking
• In the earlier stages of Economic Civilization the trading in the
economy faced many phrases:
• Barter Trade
• Commodity Money
• Metal Money
• Paper Money
• Cashless Trade
• Barter Trade- Involves two people, each has something other
• Commodity Money- Some useful commodity in demand which
can be used for trading in the market.
• Metal Money- People started using some metals as money wherein
the people used to get the products as per the weight of the metal.
• Paper Money- Issued by government, made from paper and used
as a common currency for trade.
• Cashless Trade- No use of Physical money, all the transactions
through internet banking or by using credit & debit cards at the
• Financial institution which accepts deposits, gives
money, grants loan, provides financial assistance.
• An institution which inculcated the habit of savings
among the public.
• Give interest on the savings of the public.
Banks in Early Stage (Pre-Technology)
• In earlier time, there were no computers so the staff
used to enter the transaction manually in the concerned
• This also took a lot of time to enter a transaction in the
• The customers need to stand in queues for all the
transaction they need to do.
• They would need to stand in queue to deposit &
withdraw the money in the bank as per the token
numbers and waiting for their turn.
• There was no option for withdrawing the money at any
time as the banks were only open for limited period of
• But all these took a lot of time & energy to complete the
• The customers did not had the flexibility to withdraw
money any time when they needed.
• The bank had a limited scope of service.
• The banks had to do a lot of paper work even for a small
• But after sometime, the banks introduced computers
Banks in Post Computer Stage
• In the 21st century, when the banks introduced Computers
and Network changed the whole working system and
pattern of the banks.
• Entry of computers and internet in the banking operations
wholly changed the banking scenario of the whole banking
system in India.
• Entry of computers and different technology in the banks
revolutionarised the working in banking.
• Even after the entry of computers was not the only
change, even after that there were many changes with
respect to software & different things.
• The different technological changes brought in the
Banking Sector were as follows:
Computers, Software's & Internet
Networking & connection between the branches of
ATM at different places.
Website- Internet Banking, Online Banking
Applications on Mobile Phones (Smart Phones)
• Introduction of the above technologies brought a lot of
convenience to the customers as well as the staff.
ATM’s brought a big convenience for the customers in respect
of withdrawal of cash at any time and anywhere.
Just swipe your Debit & Credit Card at any POS for simplified
& cashless shopping.
Pay any bill online through net banking just from home no
need to go anywhere.
Online shopping through net banking no need to visit the
Get account details at one click- mini statement or quarterly
statement through emails.
Immediate SMS service on swiping of card at any POS/ ATM.
Shares trading online by using Demat service of the banks.
Apply for loan and other services by sitting at home.
Transfer money from one state to other state using money
NRI’s also can operate their accounts even being outside
• Revolutionary change
• A change which changed the working perspective of the
• Technology has given potential to bank to dream and give
the best service to their customers.
• Enormous impact on officers, employees & customers.
• Advanced technology are allowing effective and
convenient delivery of services.
• Rapid access to critical information which help to take
rapid decision and also forecaster the future growth
• Availability of a wide range of inquiry facilities, assisting
the bank in business development & follow-up.
• Immediate response to customers queries.
• Automatic & prompt carrying out of standing instructions
on due date & generations of reports.
• Accurate computing of cumbersome and timeconsuming jobs such as balancing and interest
calculations on due dates.
• Automatic printing of covering
schedules, deposit receipts, pass book / pass
sheet, freeing the staff from performing these
time-consuming jobs, and enabling them to
give more attention to the needs of the
• Signature retrieval facility, assisting in
verification of transactions, sitting at their own
For the Customers….
• Facility for logging into specified self-inquiry terminals
at the branch to inquire and view the transactions in
• Remote terminals at the customer site connected to the
respective branch through a modem, enabling the
customer to make inquiries regarding his accounts, online, without having to move from his office.
• ATMs offers non-stop cash withdrawal, remittances and
• Networking of computerized branches inter-city and
intra-city, permits customers to transact from any of
• A 24-hour service through which inquiries regarding
balances and transactions in the account can be made
over the phone.
Example: State Bank of India & its Subsidiaries
• Best example.
• Initially the people had to stand in long queues for doing all the transaction in
• The work efficiency was very poor and there used to be a lot of mistakes.
• Lot of work load.
• Waiting in the line to do all the transaction and to be cautious to do all the
work in a limited time.
• For small things also they needed to come to the bank.
• But when TECHNOLOGY entered the banking system the whole working
system and pattern changed.
• After the entry of TECHNOLOGY through computers, internet, servers, etc.
the work of the customers, bank officials employees totally changed.
• As mentioned above the different good impacts of technology the same was
seen in the SBI & its subsidiaries.
• In the normal course a customer had to wait for issue of a fresh new cheque
book for 1 month but now due to interconnectivity the work has become fast.
• Opening an account also took a lot of time but now anyone can open account
just by sitting at home.
• Withdrawal, enquiry, checking account for transaction, clearing of
cheques, etc. has become very easy.
• The customers can do any transaction just sitting at home through computer.
• All these has increased the expectations of the customers as well as the
efficiency of the employees & management to work for the people and to raise
• Customers can even download the bank application in their smart phones and
can check their account status anywhere in India.
• This is not the only limit, it will go more ahead……..